Commercial car insurance, also called business car insurance protects your vehicle or vehicles that are affiliated with your business. If you use to travel between different work locations, visit customers, or transport employees, it is time to shop for commercial auto insurance. It may increase your premiums, but if you continue to use your standard car insurance it may result in a cancellation of your policy.
The next step is applying for business car insurance. Research and prepare the answers to the vigorous questions that the insurance provider will ask you. For example, they will most likely ask you about the nature of your work and how many miles you plan to drive.
However, similar to car insurance you must decipher your needs. For business car insurance there are a few typical categories that policies fall under.
- Business Use By You: covers main driver with the option of adding one other person.
- Business Use For All Drivers: covers the main driver with the option to add more than one driver to the policy.
- Business Traveling Purposes: covers people who will be driving as part of their job, being on the road often. May increase policy price significantly.
After you decide what you need, you should go about finding the best price. This is pretty much the same process as finding a good price for auto insurance. First, obtain three or more quotes and compare them. It also helps to ask the opinions of others who may already have commercial car insurance. Lastly, it is important to remember that a premium is not set in stone. In other words, it is okay to bargain.
There are other ways to aim for a lower premium. Choose a car that has a small engine, it will most likely result in a lower premium as well as low running costs. It also helps to add anti-theft devices if they are not already present.
Buying commercial auto insurance is not that much different from buying personal auto insurance, but it still an absolute necessity if you plan on using your vehicle for business purposes.